"I can see fuel slowly draining from to return to my bottle."Not sure what that means. Sounds like you are bottle feeding it.It's probably just siphoning downward.Are both ends of your hoses under liquid so they don't let air in?
If both supply and return were submerged then if it siphons down, that indicates that there is a leak in either the fuel lines or the seals of the pump itself.
It's quite possible that if you only have the input in the fuel tank that it will continue to syphen back to the lower tank.Unless there is a check valve in the input line.